Cell phones allow for paperless coupons

McClatchy Newspapers (MCT) - If clipping coupons with scissors just seems so passe, use your cell phone instead.

At least that's what companies are hoping you will do as more of them venture into the world of electronic coupons and discounts.

Already shoppers can print coupons from the Internet, subscribe to e-mail lists, and participate in online promotion programs.

But as more people buy Web-enabled cell phones, and as technology for browsing the Web on the go improves, coupons via cell phone may be the next big thing.

Department stores such as Sears and fast food chains such as Hardee's already send coupons via cell phone, and now Kroger has become the first major grocery chain to hop on board.

Its new program, begun in December, lets shoppers virtually clip coupons for products such as General Mills cereal and Palmolive using their cell phones. The virtual coupons are linked to their Kroger Plus loyalty cards, and the discount is automatically deducted when the shopper buys the qualifying item and scans a Kroger card at checkout.

The program uses software from California-based Cellfire, which offers it free for mobile phone users and works with manufacturers and companies to offer the coupons and discounts.

Kroger began testing the system in some stores last summer and launched it chainwide at the end of 2008.

"Technology is moving so fast, you've really got to be on top of it," said Carl York, spokesman for Kroger Mid-Atlantic.

For shoppers, electronic coupons may be easier because they don't require handling slips of paper, and they can be clipped any time _ even in line at the store if you have a cell phone that can browse the Internet.

For stores, the electronic coupons require less work to process and make it easier to track who is redeeming each offer.

"The manufacturers are finally realizing that there's a way to do couponing better," said Dan Kihanya, vice president of consumer marketing for Cellfire. "They realize the power of digital media can be applied to the coupon promotion world."

Kihanya said Cellfire recently signed deals with two other major grocery chains, though the names haven't yet been made public.

More retailers may soon follow as online coupons draw more fans.

The number of people visiting Internet coupon sites increased by a third from October 2007 to October 2008, according to ComScore, a Virginia company that tracks Internet usage. The number of online searches that used coupon terms doubled from January to September last year.

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© 2009, The News & Observer (Raleigh, N.C.).